$XRP This chart of XRP/USDT (4-hour, Binance) appears to display a Cup and Handle pattern, indicated by the yellow dotted line. Here’s a structured analysis:
Pattern Breakdown:
1. Cup Formation (Yellow Dotted Line)
The chart shows a rounded bottom, forming the cup shape.
This pattern suggests a recovery phase after a downtrend, where buyers gradually regain control.
2. Handle Formation (Yellow Channel)
After forming the cup, the price consolidates within a rising channel (shaded area).
This is the handle, a slight downward or sideways movement before a potential breakout.
Short Trade Setup for XRP/USDT
Entry:
Enter below $2.32 (confirmation of breakdown).
Ideal entry range: $2.32 - $2.34 (after a weak retest).
Take Profit (TP) Targets:
TP1: $2.28 (first support level).
TP2: $2.25 (previous consolidation zone).
TP3: $2.20 (stronger support area).
Stop Loss (SL):
Above $2.36 (invalidates the bearish move).
Risk-reward ratio: At least 1:2 or 1:3.
Risk Management:
Position Size: Risk 1-2% of capital per trade.
If price reclaims $2.36+, exit to avoid further loss.
